Idiots Out Wandering Around
What is the IEM?
The IEM is an on-line futures market where contract payoffs are based on real-world events such as political outcomes, companies’ earnings per share (EPS), and stock price returns. The market is operated by University of Iowa Henry B. Tippie College of Business faculty as an educational and research project.
Who can participate in the IEM?
The IEM is operated for research and teaching purposes. All interested participants world-wide can trade in our political markets. Other markets–such as the earnings and returns markets–are open only to academic traders.
Are the participants playing with real money?
YES. Trading accounts can be opened for $5 to $500. Participants then use their funds to buy and sell contracts. Traders therefore have the opportunity to profit from their trades but must also bear the risk of losing money.
Is the IEM regulated?
The IEM is an experimental market operated for academic research and teaching purposes. The IEM is not regulated by, nor are its operators registered with, the Commodity Futures Trading Commission or any other regulatory authority.
Why would anyone operate a not-for-profit real-money market?
The IEM is operated by faculty at the University of Iowa Henry B. Tippie College of Business for educational and research purposes.
As business educators, we are concerned with preparing our students to be intelligent market participants. We and many of our colleagues at other institutions integrate the IEM into our courses. Students in these courses learn first-hand about the operation of financial markets and as a result become more well-informed traders in their future market interactions.
As business researchers, we are interested in market and trader behavior. The IEM provides a rich source of data for our research.
How does the IEM safeguard my money?
The IEM is operated under the auspices of the University of Iowa. You write your check to the University of Iowa and the funds are deposited to a University of Iowa account. When funds are withdrawn from your account, the University of Iowa accounting group (a group independent of the IEM) writes a check and mails it directly to your last known address. As a university operation, the IEM is subject to audits by university and state auditors.
Can I try out the IEM without investing money?
YES. Login to the IEM and follow the directions on the screen to log into the practice market. You will be able to do everything a trader can do, except trade in our real-money contracts.
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